Monday, October 31, 2011 from 18:30pm to 19:10pm, JPT[Attendees]
Ken-kichi Kosakai, Board Director and Managing Executive Officer
Kouji Noborihayashi, Head of Strategic Sales Planning Department, Sales & Marketing
Division, and Executive Officer
Seiichi Murakami, Head of Development Division and Executive Officer[Business results report for the 1st half of fiscal 2011]
Q/ What is the status of the sales of new products, Lexapro and SIMPONI?
A/ Lexapro was launched on August 22. The competition in the SSRI/SNRI market is veryharsh. In these conditions, we have conducted marketing activities with the policy tosteadily penetrate the product among psychiatrists. Since the marketing effort
progressed generally well, sales during the 1st half of the fiscal year were ¥400 million.
As for SIMPONI, sales during the 1st half were minor since it had just been launched on
September 16.

[Forecasts for the full-year results]
Q/ Operating income for the 1st half exceeded the forecast (as announced at the time of the
1st quarter result report) by ¥4 billion. Why haven’t you modified the full-year forecast?
A/ Both net sales and operating income exceeded the current forecast for the 1st half.
However, considering the product mix, expected increase in SG&A expenses and otherfactors, it is expected that R&D expenses and new product-related operating expenses
will increase in the 2nd half. It is also difficult to forecast royalty income and the NHI
price of new products scheduled to be listed in the NHI price list. Accordingly, we havenot modified the full-year forecasts.

Q/ In the briefing for the 1st quarter results, you explained that the new drugs would
contribute about ¥15 billion to net sales for fiscal 2011. Is there any change in that
forecast?
A/ At present, we expect about ¥15 billion.

Remicade1

Q/ Your full-year forecast for Remicade sale is ¥66.4 billion. Did you modify the original
forecast? This forecast is a 10% increase from the previous year. Your forecast for thegrowth rate has become slower. What is the reason?
A/ The full-year sales forecast was modified and decreased from the original forecast
announced at the beginning of the fiscal year. The growth rate has become slower thanprevious years because the denominator for the calculation has become larger since thesales revenues have increased. We believe that this is because the competition has
become harsher with more competing products introduced in the market.

Q/ Is the sale for the indication of rheumatoid arthritis the largest contribution to the total
Remicade sales? I understand that the sales increase affected by the dose escalation
for rheumatoid arthritis has settled any time now. Do you believe that the growth willcontinue?
A/ Sales for the indication of rheumatoid arthritis are larger than any other indications. Sales
are supported not only by the effect of the increased dosage but the drug has been
administered to more new patients with rheumatoid arthritis. We do not believe thatsales growth will stop very soon.
Moreover, we have acquired approval for the dose escalation for Crohn’s disease inAugust. We expect that this dose escalation for Crohn’s disease will also have a positiveeffect on sales as well.

Radicut
Q/ What effects do you expect from Radicut generic products? Has any bag-formulation ofgeneric drug been introduced in the market?
A/ In the 1st half of the year, the impact of Radicut generic drugs was relatively minor since
their introduction in the market was later than expected. However, based on the latest
conditions, we estimate that Radicut sales will decrease by more than 10% due togeneric drugs’ penetrating into the market since September. We have set the annual
sales forecast assuming that this trend will be more accelerated in the future.
The bag-formulation has already been penerated in the market. We estimate that thepercentage of the bag-formulation is a little higher than the ampule-formulations.
Q/ How long is the actual Radicut administration period on average?
A/ Around 10 days.

ImuseraQ/ I understand that Imusera will be co-marleted with Novartis. Do you divide with Novartis

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medical facilities to visit for marketing?
A/ We may divide with Novartis information-providing activities for certain facilities in order toensure provision of information on proper drug use. However, we will not divide
prospective customers or sales areas. This product will be sold based on two brands
and two channels.
Q/ We hear that there are 14,000 patients with multiple sclerosis. Is there any possibility that
potential patients will appear after the introduction of Imusera?
A/ Medical care certificates for specified diseases have been issued to about 14,000
patients with multiple sclerosis. With the introduction of the new drug, this number may
increase.
Q/ Is all-patient post marketing surveillance required for Imusera?
A/ All-patient post marketing surveillance is required as a condition for approval and we willobserved all cases. We estimate that it will take about two years and a total of about
1,000 cases will be tracked by the two companies.

Telavic
Q/ When will Telavic be listed in the NHI price list? If the NHI price proposed is not what you
desire, is it possible to postpone the listing?
A/ We expect that the drug will be listed in the NHI price list in November. Since Telavic is
desired by the market, we would like to proceed with the market introduction as soon as
feasible.
Q/ When listed in the NHI price list, is the subsidy for drug expenses applied to Telavic?
A/ We expect the subsidy to be applied.

FTY720 (Gilenya)
Q/ Why did net sales of other pharmaceutical drugs increase from the same period lastyear?
A/ The increase was supported mainly by royalty income from licensing of FTY 720(Gilenya) to Novartis.
Q/ Do the revenues from technical license contracts include only royalty income for FTY 720(Gilenya) and the milestone at the time of TA-1790 application in the U.S.?
A/ The revenues from technical license contracts also include some royalty income andlump sum payments received for licensing of other products.
Q/ Sales of FTY720 (Gilenya) at Novartis were very strong (Jan. - Sep. 2011: $291 million).
How much royalty income do you expect for the full year?
A/ I am sorry but the Company refrains from making any comment on that matter.

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SG&A expenses
Q/ Why will SG&A expenses increase in the 2nd half from the 1st half of the fiscal year?
A/ Major factors for the increase are the expected increase in operating expenses relating tomarket introduction of new products, development expenses for TA-7284 for which
Phase III trial began in the 1st half, and R&D expenses including in-licensing costs.
Q/ R&D expenses for the 2nd half are about ¥35 billion. How much in-licensing costs areincluded in this figure?
A/ Some in-licensing arrangements have not been determined and some are still in
negotiation. Accordingly, we would like to refrain from making any comment regarding
the amount included in this figure.

[Development pipeline]
Q/ Why did you discontinue MCI-196 development in the United States?
A/ In the United States, in 2014, oral agents are to be included in the new prospective
payment system for medical costs of dialysis patients. At present, development has notbeen discontinued, but we are examining the feasibility of the agent.

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